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According to a Dubai Chamber of Commerce and Industry (DCCI) study the market is one of the most developed in the Middle East, largely due to a developed healthcare infrastructure as well as the highest per-capita expenditure on medications in the region. While Turkey remained the highest importer of pharmaceuticals in 2010 and Algeria was the second-highest, the UAE was third ahead of Egypt and Malaysia.
In terms of illness, the UAE has the highest prevalence of diabetes in the Arab region at 19.2% of the population, which collectively clocks-up $5.5bn in spending on the disease per year (2010), totalling 14% of the region's healthcare expenditure (2010). This prevalence - as well as the disease's propensity to lead to further illness (including kidney disease, heart disease, stroke, blindness and amputation) - has contributed to the high figures displayed above.
One in four deaths is attributed to heart disease in the UAE, equivalent to a mortality rate from cardiac disease of 22%. Heart disease also occurs approximately 15 years earlier for patients in the UAE than the rest of the world, at 45 years old rather than 60.
A lack of activity amongst the UAE's population has also been cited as one of the main causes of the high rates of obesity, which affects one-third of schoolchildren in Dubai according to 2011 Beat Diabetes statistics. Earlier this year, the UAE's Ministry of Health Annual Report predicted that obesity rates among women will reach 44.6% by 2015.
A high percentage of disposable income in the region's population, coupled with the availability of drugs without prescription both add to pharmaceutical industry turnover.
After the 2011 DCCI study found drug prices in the UAE to be 23 times higher than World Health Organization (WHO) recommended levels, legislation was brought in to reduce the cost of 115 drugs. The cost was reduced by 5%to 45% and was preceded by the cost-cutting of another 565 drugs by 5% to 60% (September 2011) by the UAE's Ministry of Health.
These price cuts will have a knock-on effect on the country's imports, 64% of which originate from Europe, 8% from North America, 8% from within the MENA region and 5% from India.
Local firms to step up production
However, further cost-cutting measures are set to be taken by manufacturers eyeing local production. UAE-based Gulf Pharmaceutical Industries (known as Julphar) signed a formal partnership with the Saudi Arabian Cigalah Group in November 2011, to construct a Dhs147m ($40m) manufacturing plant in the Kingdom's Western region.
The plant - due for completion in 2014 - will manufacture Julphar's branded tablets, capsules and syrups. The Ras Al Khaimah-based company was also due to start local insulin production at a new Dhs500m facility from March 2012 to monetise on the demand for the diabetic drug. Julphar has predicted that the GCC's health expenditure will grow from Dhs127.5bn ($34.7bn, 2009) to Dhs196.5bn ($53.5billion) by 2014, growing at a rate of 9.1% annually.
Thus, an increase in locally-manufactured drugs, a decrease in imports and the slashing of drug prices in the UAE are all set to impact the pharmaceutical industry in the near future.
Staff
